In the UAE, consumer protection laws mandate that sellers provide accurate descriptions of their products and prohibit any form of misleading information. Violations of these laws can result in hefty fines, including up to AED100,000 for selling defective cars. Buyers are also entitled to take legal action if misled.
Key Legal Provisions
- Honest Representation
- Article 17 of Federal Law No. 15 of 2020 (amended by Federal Decree-Law No. 5 of 2023) prohibits sellers and advertisers from misrepresenting products or services. Any misleading advertisements or descriptions are strictly forbidden.
- Deceptive Claims Defined
- Article 8 of Cabinet Decision No. 66 of 2023 outlines what constitutes deceptive practices. Misleading claims about a product’s nature, composition, origin, warranty terms, price, or expected results can create false impressions and are deemed illegal.
- Disclosure for Secondhand or Defective Products
- Article 7 of Cabinet Decision No. 66 of 2023 requires sellers of used, renovated, or defective products to clearly disclose their condition. The description must be included in advertisements, contracts, or invoices and presented transparently at the point of sale.
- Warranty Obligations
- If a seller provides a warranty, it must include specific details per Article 12 and comply with supply obligations under Article 13 of Cabinet Decision No. 66 of 2023.
- Consumer Compensation
- Buyers have the right to claim compensation for damages caused by defective products under Article 24 (1) of the Consumer Law. Any agreement that contradicts this right is void.
- Financial Penalties
- Addendum No. 2 of Cabinet Decision No. 66 of 2023 stipulates fines of up to AED100,000 for sellers offering defective used or renovated products.
Filing a Complaint
Buyers who have been sold a defective or misleadingly represented car can file a complaint with the UAE Ministry of Economy or the relevant local authority in their emirate.
Steps for Buyers
- Gather Evidence
- Collect proof of the defect or misleading information, such as contracts, advertisements, invoices, or photographs.
- Verify Warranty Terms
- If the car is under warranty, check the terms to understand coverage and potential remedies.
- File a Complaint
- Submit the complaint to the competent authority in your emirate with all supporting documents.
- Pursue Compensation
- Under the law, buyers can seek compensation for personal or material damages resulting from the defect.
Consumers in the UAE are well-protected by robust legal frameworks. Sellers must disclose accurate information, particularly when dealing with secondhand or defective goods. Failure to comply can lead to significant financial penalties and legal action. Buyers are encouraged to exercise their rights and report any violations to safeguard their interests.
